VinFast Auto (NASDAQ:VFS) versus Tesla (NASDAQ:TSLA) Critical Contrast

Tesla (NASDAQ:TSLAGet Free Report) and VinFast Auto (NASDAQ:VFSGet Free Report) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Tesla and VinFast Auto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tesla 13.07% 10.24% 6.08%
VinFast Auto -187.34% N/A -46.50%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tesla and VinFast Auto, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tesla 9 16 14 0 2.13
VinFast Auto 0 0 4 0 3.00

Tesla currently has a consensus price target of $231.06, suggesting a potential downside of 30.59%. VinFast Auto has a consensus price target of $9.00, suggesting a potential upside of 111.27%. Given VinFast Auto’s stronger consensus rating and higher possible upside, analysts plainly believe VinFast Auto is more favorable than Tesla.

Insider & Institutional Ownership

66.2% of Tesla shares are owned by institutional investors. 20.7% of Tesla shares are owned by company insiders. Comparatively, 16.2% of VinFast Auto shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Tesla and VinFast Auto”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tesla $97.15 billion 11.00 $15.00 billion $3.65 91.20
VinFast Auto $1.20 billion N/A -$2.40 billion ($1.14) -3.74

Tesla has higher revenue and earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Tesla, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Tesla has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500. Comparatively, VinFast Auto has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Summary

Tesla beats VinFast Auto on 11 of the 13 factors compared between the two stocks.

About Tesla

(Get Free Report)

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.

About VinFast Auto

(Get Free Report)

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.

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